Management Chp. 5-8

Which of the following is NOT a step in the management by objectives (MBO) process? A) Collectively select goals that are challenging B) Jointly develop operational plans C) Participate in the selection of goals that are consistent with the company's overall goals D) Jointly discuss possible goals E) Meet regularly to review progress toward goal accomplishment

B) Jointly develop operational plans

Which of the following is an aspect of the experiential approach to innovation?

Design iteration

The two general kinds of trade barriers are _____. A) tariff barriers and nontariff barriers B) government import standards and industry import standards C) voluntary and involuntary barriers D) qualitative and quantitative barriers E) nationalistic and geocentric barriers

A) tariff barriers and nontarriff barriers

Milestones are formal review points that tend to lengthen the innovation process. T/F

False

A multinational company that acts with _____ has offices, manufacturing plants, and distribution facilities in different countries that are run based on the same rules, guidelines, policies, and procedures.

Global consistency

Companies can achieve growth mainly by _____.

Growing internally through direct expansion or creating new business

Which of the following is true about planning?

It helps managers create task strategies

Which of the following is true of global business?

It is the buying and selling of goods and services by people from different countries

Which of the following statements is true about the compression approach to managing innovation?

It is used during periods of incremental change

Which of the following is NOT a step in the management by objectives (MBO) process?

Jointly develop operational plans

A technology cycle occurs whenever there are major advances or changes in the _____ in a field or discipline.

Knowledge, tools, and techniques

An expatriate is someone who _____.

Lives or works outside of their own country

_____ is the degree to which two companies have overlapping products, services, or customers in multiple ventures.

Market commonality

Who among the following is responsible for the creation of tactical plans?

Middle managers

Top management is responsible for developing ____.

Strategic plans

_____ are the targets that managers use to measure whether their firm has developed the core competencies that it needs to achieve a sustainable competitive advantage.

Strategic reference points

The term _____ refers to the overall organizational strategy that addresses the question "What business or businesses are we in or should we be in?"

corporate level strategy

For options based planning to work, the organization must _____.

have slack resources

For options-based planning to work, the organization must _____.

have slack resources

Groupthink occurs in

highly cohesive groups where there is a great deal of pressure to agree with each other

A(n) _____ resource is a resource that is impossible or extremely costly or difficult for other firms to duplicate.

imperfectly imitable

Over the long run, the best way for a company to sustain competitive advantage is to create _____ year after year.

innovation streams

The customers of a restaurant are requested to rate the service of the waiters on a sheet of paper. The rate of each waiter is then compared to the rates of the all the other waiters. This is the method of _____ comparisons.

maximized

Merissa, a famous dress designer, wants to launch a new collection. She wants the best material available for her dresses and does not want to settle for anything lesser. In this context, Merissa is _____.

maximizing

The General Electric workout is a special kind of ____.

results-driven change

Management by objectives (MBO) is a management technique often used to develop and carry out

tactical plans

According to the S.M.A.R.T. guidelines, goals should be ____.

task oriented

Which of the following is a drawback of planning?

A potential pitfall of planning is the detachment of planners

What type of planning would be used to create the festivities necessary to celebrate the 100-year anniversary of a furniture manufacturing company?

A single-use plan

_____ are companies that have a small share of a slow-growing market. A) Dogs B) Question marks C) Core firms D) Stars E) Cash cows

A) Dogs

Which of the following is true about planning? A) It gives direction to managerial efforts. B) It adversely affects profitability. C) It quickens adaptation to change. D) It fosters organizational flexibility. E) It creates an environment of uncertainty.

A) It gives direction to managerial efforts; Planning intensifies effort, persistence, direction, and creation of task strategies.

Which of the following is an aspect of the experiential approach to learning? A) Multifunctional teams B) Product duplication C) Technological lockout D) Micromanagement E) Centralization

A) Multifunctional teams

_____ is the set of shared values and beliefs that affects the perceptions, decisions, and behavior of the people from a particular country. A) National culture B) Cultural nationalization C) National mindset D) National diversity E) Cultural diversity

A) National culture

Which of the following is NOT one of the five industry forces that determine an industry's overall attractiveness and potential for long-term profitability? A) Organizational synergy B) Bargaining power of buyers C) Bargaining power of suppliers D) Threat of substitute products E) Character of the rivalry

A) Organizational synergy

A cosmetics company that is considering entering the South American market would be especially interested in the discretionary income within that region. In this context, which of the following is a determining factor in its global strategy? A) Purchasing power B) Infrastructure costs C) Sociocultural trends D) Expropriation potential E) Political uncertainty

A) Purchasing power; Purchasing power is the relative cost of a standard set of goods and services in different countries.

Which of the following is the most specific type of standing plan? A) Rules and regulations B) Budgets C) MBO plans D) Policies E) Procedures

A) Rules and regulations

Souzia, a small tropical country, boycotted the products of an international clothing store because the company manufactures and exports some of its goods from Argonia, the country with which Souzia has long standing political problems. This boycott is an example of _____. A) a trade barrier B) nationalization C) patronization D) acculturation E) a tariff

A) a trade barrier; Trade barriers are government-imposed regulations that increase the cost and restrict the number of imported goods.

According to social psychologist Kurt Lewin, _____ lead to differences in the form, quality, or condition of an organization over time. A) change forces B) generational changes C) freezing forces D) inertia forces E) resistance forces

A) change forces

According to Kurt Lewin, during the _____ stage of managing organizational change, workers and managers alter their behavior and work practices. A) change intervention B) change mobilization C) change inertia D) refreezing E) unfreezing

A) change intervention

The most important factor in an attractive business climate is the _____. A) easy access to growing markets B) high political risks C) limited infrastructure D) high competition among companies E) presence of established markets

A) easy access to growing markets

According to Hofstede's research on cultural dimensions, _____ cultures emphasize the importance of relationships, modesty, caring for the weak, and quality of life. A) feminine B) masculine C) individualistic D) relationship-oriented E) economic-based

A) feminine

Documentary training focuses on _____.​ A) ​identifying specific critical differences between cultures B) ​identifying the similarities between cultures C) determining the number of expatriates who will be able to adjust to a culture D) ​testing how quickly expatriates adjust to a culture E) ​grouping countries with cultural similarities together

A) identifying specific critical differences between cultures

Organizational _____ is the successful implementation of creative ideas in organizations. A) innovation B) change C) development D) creativity E) deployment

A) innovation

After Malta was permitted to join the European Union (EU), the other countries of the EU removed all taxes on the import of goods manufactured in Malta. Malta was preparing to become part of a(n) ____. A) regional trading zone B) global market C) international cartel D) high tariff trading zone E) zone of ethnocentricity

A) regional trading zone

During a discussion about the budget of a company, the discussion gets personal between two managers. They sway from the topic and start venting their anger on each other. In this context, the managers have a(n) _____ conflict.

A-type

Which of the following is a component of a creative work environment that encourages creativity?

Absence of organizational impediments

The performance scores of each of the employees of a company are compared against a standard score and employees with scores lesser than a particular score are penalized. The company used a(n) _____ method of comparison.

Absolute

_____ is defined as the purchase of a company by another company.

Acquisition

_____ are defined as workplace cultures in which workers perceive that new ideas are welcomed, valued, and encouraged. A) Homogeneous work environments B) Creative work environments C) Hierarchical work stations D) Centralized work environments E) Bureaucratic work teams

B) Creative work environments

In the _____ stage of organizational decline, cutbacks and layoffs will have reduced the level of talent among employees. A) inaction B) crisis C) dissolution D) faulty action E) blinded

B) crisis

During the latter half of the last decade, flat-screen television sets were gradually replaced by LED television sets; the LED televisions became the new market standard. The latter is an example of a _____. A) differential design B) dominant design C) design iteration D) dichotomous product E) design dichotomy

B) dominant design; A dominant design is a new technological design or process that becomes the accepted market standard.

German chip manufacturer, Infineon AG, has joined with Motorola Inc. and Agere Systems Inc. to establish a new company in order to develop and license chip designs for cellphones. These three companies have created a _____. A) policy uncertainty B) joint venture C) franchise D) subsidized corporation E) global new venture

B) joint venture

The term _____ is used by Hofstede to describe the degree to which people in a country are uncomfortable with unstructured, ambiguous, unpredictable situations. A) masculinity B) uncertainty avoidance C) power distance D) political uncertainty E) short-term/long-term orientation

B) uncertainty avoidance

Fran Wilson Creative Cosmetics is a medium-sized U.S. company that sells 1.5 million tubes of lipstick annually in Japan. It has no physical presence in Japan beyond the fact that its products are sold there. Which of the following technique does the company adopt to reach the Japanese market? A) Franchising B) Direct investment C) Exporting D) Licensing E) Strategic alliance

C) Exporting; When companies produce products in their home countries and sell those products to customers in foreign countries, they are exporting.

Caleb wants to increase the efficiency of his coffee plant. He is trying to decide which option is better: installing new equipment or servicing the old ones. In the context of the decision-making concept, Caleb is _____. A) generating alternative courses of action B) computing the optimal decision C) evaluating each alternative D) satisficing E) identifying the decision situation

C) evaluating each alternative

The _____ is a measure of the degree to which barriers to entry make it easy or difficult for new companies to get started in an industry. A) bargaining power of suppliers B) character rivalry C) threat of new entrants D) bargaining power of new buyers E) scope of new SBUs

C) threat of new entrants

The marketing managers of a company are having a conflict over how they can improve the marketing strategy of their company. The managers are disagreeing on the views presented by each other based on their experiences and knowledge. In this context, the managers are engaged in a(n) _____.​

C-type conflict

A _____ is a company with a large share of a slow growing market.

Cash cow

Which of the following methods for managing resistance to change should only be used as a last resort or under crisis conditions?

Coercion

CLM is a big cable company. The company has recently declared bankruptcy and needs to engage in restructuring in order to give it more flexibility and allow it to raise capital. Since it has identified the need for strategic change, what would be the organization's next step in this strategy making process?

Conducting a situational analysis

Companies that want to conduct business in South Mainland face a lot of political uncertainty. Due to this reason, they do not enter directly into the market. Instead, they use licensing and franchising to conduct business in the country. In this context, the companies are using a(n) _____ strategy to deal with the political risks.

Cooperation

When resistance to change is based on insufficient, incorrect, or misleading information, which of the following is the best approach that a manager can use to manage resistance to change? A) Participation B) Coercion C) Change manipulation D) Education and communication E) Negotiation

D) Education and communication

Which of the following is NOT a step in the management by objectives (MBO) process? A) Collectively select goals that are challenging B) Meet regularly to review progress toward goal accomplishment C) Participate in the selection of goals that are consistent with the company's overall goals D) Jointly develop operational plans E) Jointly discuss possible goal

D) Jointly develop operational plans

The _____ has liberalized trade between countries so that business can plan for one market rather than for three separate markets. A) General Agreement on Tariffs and Trade B) Asia-Pacific Economic Cooperation C) Maastricht Treaty of Europe D) North American Free Trade Agreement E) Association of Southeast Asian Nations

D) NAFTA

Which of the following is one of the sources of resistance to change? A) Multifunctional teams B) Discontinuous innovation C) Change forces D) Self-interest E) A dynamic organizational culture

D) Self-interest

The _____ approach to managing innovation assumes that innovation is a predictable process made up of a series of steps and that reducing the time it takes to complete those steps can speed up innovation. A) generational B) prototypical C) milestones D) compression E) dialectical

D) compression

The purpose of action plans is to leave commitments open by maintaining a cushion of resources such as extra time, people, money, or production capacity that can be used to address and adapt to unanticipated changes, problems, or opportunities. T/F

False

When companies are performing above or better than their strategic reference points, top management is more likely to choose a more daring, risk taking strategy. T/F

False

An analysis of an organization's external environment begins with an assessment of the company's distinctive competencies and core capabilities. T/F

False; A company's distinctive competencies and core capabilities are parts of its internal (not external) environment.

Most companies compete directly with all the firms in their industry. T/F

False; Most companies do not compete directly with all the firms in their industry. Instead of competing with the industry, most firms compete directly with just a few companies.

Global new ventures bring a product or service to market in one foreign market at a time. T/F

False; Rather than going global one country at a time, global new ventures bring a product or service to market in several foreign markets at the same time.

Resistance to change usually results from organizational factors: such as the absence of promotion guidelines, bonuses, and praise.T/F

False; Resistance to change results from personal factors such as self-interest, misunderstanding and distrust, and a general intolerance for change.

The North American Free Trade Agreement (NAFTA) is a regional trade agreement between Canada and the United States. No other nations have signed this trade agreement. T/F

False; The North American Free Trade Agreement (NAFTA) is a regional trade agreement between the United States, Canada, and Mexico.

Results-driven change focuses primarily on changing company procedures, management philosophy, or employee behavior. T/F

False; This is the definition of activity-oriented change. By contrast, results-driven change supplants the sole emphasis on activity with a laser-like focus on quickly measuring and improving results.

Standing plans deal with unique, one-time-only events. T/F

False; This is the definition of single-use plans. Standing plans are created once and then used repeatedly to handle frequently recurring events.

Which of the following is a component of a creative work environment?

Freedom

Which of the following is an accepted method for tracking progress toward goal achievement?

Gathering and providing performance feedback

Which of the following is the first step in establishing a devil's advocacy program?

Generate a potential solution

A(n) _____ strategy is a corporate strategy that addresses the question "How should we compete in this line of business?"

Industry-level

Which of the following is a commonly used method for increasing goal commitment?

Making goals public

Which of the following is NOT one of the basic methods for managing resistance to change?

Micromanagement

Which of the following is an aspect of the experiential approach to learning?

Multifunctional teams

The _____ has liberalized trade between countries so that business can plan for one market rather than for three separate markets.

NAFTA

Valuable, rare, imperfectly imitable resources can produce sustainable competitive advantage only if they are _____ resources.

Nonsubstitutable

The Xenonian government has banned the import of snow skis from other countries as there were many fatal accidents involving poorly built snow skis. As a result, all snow skis marketed in Xenonia must now be manufactured in Xenonia. This is an example of a(n) _____.

Nontariff barrier

_____ planning allows companies to maintain flexibility by making small simultaneous investments in many alternative plans.

Options based

_____ is defined as a philosophy and collection of planned change interventions designed to improve an organization's long term health and performance.

Organizational development

Which of the following is NOT one of the components of creative work environments?

Organizational impediments

Which of the following is NOT one of the five industry forces that determine an industry's overall attractiveness and potential for long-term profitability?

Organizational synergy

In a situational analysis, a strategic group is a group of _____ that top managers choose for comparing, evaluating, and benchmarking their company's strategic threats and opportunities.

Other firms within an industry; A strategic group is a group of other companies within an industry against which top managers compare, evaluate, and benchmark their company's strategic threats and opportunities.

To increase its customer base, Alpha LLC. has decided to sell its products in two new states. Alpha LLC. is performing the _____ function of management.

Planning

_____ is choosing a goal and developing a method or strategy to achieve a goal.

Planning

Many companies in Dansland retracted their businesses as the government passed a new law requiring the companies to pay double the tax for conducting business in Dansland.​ This is a _____ that the companies doing business in Dansland have faced.

Policy uncertainty

_____ is associated with the risk of major changes in governmental regimes that can result from war, revolution, death of political leaders, social unrest, or other influential events.

Political uncertainty

What are the two types of political risk that affect companies conducting global business?

Political uncertainty and policy uncertainty

Susan is a manager at a grocery store. Every morning when she enters the store, there are a series of steps that should be taken by her. She has to switch on all the lights, switch on the air conditioner, check if any product is expired, and check if the cash registers are working. In this context, Susan is following a(n) _____.

Procedure; Procedures are standing plans that indicate the specific steps that should be taken in response to a particular event.

In case of a fire, most organizations have a series of actions that must take place beginning with notifying the fire department and include evacuating buildings. In this context, which of the following types of standing plans is used by the organizations?

Procedures

____ are standing plans that indicate the specific steps that should be taken in response to a particular event.

Procedures

Which of the following is a disadvantage of face to face brainstorming that is overcome by electronic brainstorming?

Production blocking

_____ occurs when you have an idea but have to wait to share it because someone else is already presenting an idea to the group.

Production blocking

A company that is seeking to grow by taking risks and looking for innovations is best characterized as a(n) _____.

Prospector

The Candinia government continues to impose high tariffs on rice to make sure local farmers can earn a living. The tariff on rice is an example of _____.

Protectionism

A cosmetics company that is considering entering the South American market would be especially interested in the discretionary income within that region. In this context, which of the following is a determining factor in its global strategy?

Purchasing power

____ is a systematic process of defining problems, evaluating alternatives, and choosing optimal solutions.

Rational decision making

In an attempt to stop declining profitability, Quint Cement Co., a construction material manufacturer, stopped manufacturing other kinds of cement products and concentrated on special anti corrosion cement. If Quint Cement Co. is successful in making the needed changes, it will more than likely implement a _____ strategy.

Recovery

The second step in a retrenchment strategy is _____.

Recovery

____ consists of the strategic actions that a company takes to return to a growth strategy.

Recovery

At a canning factory, new employees were instructed to wear a certain type of clothes when working around the canning machine. The description of the clothes was very detailed and specific. Which of the following kinds of standing plans is described in this example?

Rules and regulations

Nearly all technology cycles follow the typical _____ pattern of innovation.

S-curve

Daniel is starting a small shoe manufacturing company. He does not want the best equipment at the moment. He just wants equipment that is good enough to work with. In this context, Daniel is _____.​

Satisficing; Satisficing is choosing a "good-enough" alternative.

_____ are the firms in a strategic group that follow strategies related to but somewhat different from those of the core firms.

Secondary firms

Due to an earthquake, the servers of an online shopping company were affected and the internet was down. The managers of the company had to formulate and carry out a procedure ​so that businesses could run normally while the servers were being fixed. To overcome this unexpected problem, the mangers devised a(n) _____.

Single-use plan; Single-use plans deal with unique, one-time-only events.

A(n) _____ is a direct tax on imported goods.

Tariff

The development of the DVD player was a source of _____ to companies in the movie industry just as VHS tapes had once been.

Technological discontinuity

The phases of a technology cycle within an innovation stream begins with:

Technological discontinuity; In order from beginning to end, the phases of a technology cycle within an innovation stream consist of technological discontinuity, discontinuous change, dominant design, and incremental change.

The strategy making process begins with:

The assessment for the need of strategic change

Identify a common factor of global new ventures?

The bringing of a product or service to several different foreign markets at the same time

Which of the following conditions must be met if a firm's resources are to be used to achieve a sustainable competitive advantage?

The resources must be rare

_____ is the most important factor in determining the success or failure of an international assignment.

The willingness of an expatriate's spouse and family to adjust to a foreign culture

A creative work environment requires organizational encouragement and supervisory encouragement as well as work group encouragement. T/F

True

A focus strategy entails using either a cost leadership or a differentiation approach to producing a good or service. T/F

True

A joint venture is an example of a strategic alliance. T/F

True

A strategic group is a group of other companies, within an industry, that top managers choose for comparing, evaluating, and benchmarking their company's strategic threats and opportunities. T/F

True

Character of rivalry is a measure of the intensity of competitive behavior between companies in an industry. T/F

True

Companies often choose a stability strategy when their external environment doesn't change much or after they have struggled with periods of explosive growth. T/F

True

Declaring victory too soon is one of the mistakes managers often make in the refreezing stage of change. T/F

True

Dominant designs emerge because they solve a practical problem, because of the negotiations of independent standards/bodies, or because of critical mass. T/F

True

Even though education and communication, participation, negotiation, top management support, and coercion can all be used to manage resistance to change, coercion should be used only in a crisis or as a last resort. T/F

True

For planning to be effective, workers need a specific, challenging goal as well as regular feedback to track their progress. T/F

True

Global business is defined as the buying and selling of goods and services by people from different countries. T/F

True

Global joint ventures can be difficult to manage because they represent a merging of four cultures. T/F

True

In a multinational company, managers at company headquarters value global consistency as it simplifies decision making. T/F

True

Planning can impede change, create a false sense of certainty, and lead to a detachment of planners. T/F

True

Planning works best when the goals and action plans at the bottom and middle of the organization supports the goals and action plans at the top of the organization. T/F

True

Portfolio strategy is a corporate level strategy that minimizes risk by diversifying investments among various business or product line. T/F

True

Strategic dissonance is a discrepancy between management's intended strategy and the strategy actually implemented by the managers. T/F

True

Technological discontinuities are followed by discontinuous change, which is characterized by technological substitution and design competition. T/F

True

Technological innovation not only makes it possible to duplicate the benefits obtained from a company's distinctive advantage but also quickly creates an opportunity to turn a company's competitive advantage into a competitive disadvantage. T/F

True

The biggest disadvantage associated with licensing is that the licensor gives up control over the quality of the good or service sold by the foreign licensee. T/F

True

The criteria for choosing an office/manufacturing location are different from the criteria for entering a foreign market. T/F

True

The three steps of the strategy-making process are (1) assess the need for strategic change, (2) conduct a situational analysis, and (3) choose the strategic alternatives. T/F

True

The three strategies used to minimize or adapt to the political risk inherent in global business are avoidance, control, and cooperation. T/F

True

Two factors that help companies determine the growth potential of foreign markets are the purchasing power of the consumers and types of foreign competitors already in the market. T/F

True

When Klonorox Corporation, a manufacturer of bleach and bleach based cleaning products, acquired Masterssauce brand steak sauce; it was an example of _____.

Unrelated diversification

Clive Motor Company solely owns and operates manufacturing plants in Brazil, Chile, Germany and India. Which of the following methods for conducting global business has Clive Motor Company used in this example?

Wholly owned affiliate

The trade agreement that represented the most significant change to the regulations governing global trade during the 1990s was the _____.

World Trade Organization

The managers of a transport company are planning how much money should be allocated to each of its units. They want to cut down unnecessary expenses and put the savings into developing the company. In this context, the managers are formulating a(n) _____.

budget

It is appropriate to use a(n) _____ approach to manage innovation in more certain environments, in which the goals are lower costs and incremental improvements in the performance and function of an existing technological design.

compression

In any organization, the _____ are the less visible, internal decision making routines, problem solving processes, and organizational cultures that determine how efficiently inputs can be turned into outputs.

core capabilities

The most important factor in an attractive business climate is the _____.

easy access to growing markets

In the context of organizational development interventions, the purpose of _____ interventions is to change the character and performance of an organization, business unit, or department.

large-system

The basic purpose of _____ planning is to leave commitments open by maintaining slack resources.

options-based

A ____ exists when there is a gap between a desired state (what managers want) and an existing state (the situation that the managers are facing).

problem

A _____ resource is a resource that is not controlled or possessed by many competing firms.

rare

The purpose of a _____ strategy is to turn around very poor company performance by shrinking the size or scope of the business.

retrenchment

One of the important conditions that a firm must meet in order to gain a sustainable competitive advantage with its capital is:

the firm's resources must be imperfectly imitable; A competitive advantage becomes a sustainable competitive advantage when other companies cannot duplicate the value a firm is providing to customers.

Companies that are following a _____ strategy would be most likely to try to improve the way in which they sell the same goods or services to the same customers.

Stability

In the context of BCG matrix, ​_____ are companies that have a large share of a fast-growing market.

Stars

____ are a type of operational plan.

Single-use plans

Resistance to change usually results from organizational factors such as the absence of promotion guidelines , bonuses, and praise. T/F

False

The greater the market commonality, the less intense the direct competition between two companies. T/F

False

Nearly all technological strategies follow a bell shaped pattern of innovation. T/F

False

Regional trading is defined as a method of investment in which a company builds a new business or buys an existing business in a foreign country. T/F

False

Starshine Inc., a toy manufacturing company, has collaborated with Capsidy Corp., a book publishing company, to come up with a third company, Starcap Inc., which manufactures educational toys and games for preschool children. In this context, Starcap is a(n) _____. ​ A) ​strategic alliance B) ​exporter C) ​licensee D) ​joint venture E) ​franchise

D) joint venture; A joint venture occurs when two existing companies collaborate to form a third company.

The ____ is a decision-making method in which a panel of experts responds to questions and to each other until an agreement is reached on how a specific issue should be handled.

Delphi tecnique

The manager of a car manufacturing company in the U.S. wants to set up factories in three​ other countries by the end of the year. After he has set this goal, which of the following is the next step he should take in order to achieve this goal?

Develop commitment toward the goal

_____ is a method in which a company builds a new business or buys an existing business in a foreign country.

Direct foreign investment

____ is the phase of a technology cycle characterized by technological substitution and design competition.

Discontinuous change

In the _____ stage of organizational decline, a new CEO may be brought in to oversee the closing of stores, offices, and manufacturing facilities, the final layoff of managers and employees, and the sale of assets.

Dissolution

At which stage of organizational decline does the decline become irreversible?

Dissolution stage

Which of the following is a pitfall of planning? A) It increases employee turnover. B) It decreases the effort put in by managers and employees. C) It discourages employees form working hard for long periods. D) It leads to disintegration of task strategies. E) It can impede change and slow needed adaptation.

E) It can impede change and slow needed adaptation

Which of the following statements about resistance to change is true? A) It increases when those affected by the change participate in its planning and implementation. B) It increases when change efforts receive significant managerial support. C) It is minimal in conditions of certainty. D) It increases when employees are educated about the need for change. E) It is caused by misunderstanding and distrust.

E) It is caused by misunderstanding and distrust

Which of the adaptive strategies tends to result in the poorest performance? A) Prospectors B) Defenders C) Analyzers D) Niche marketers E) Reactors

E) Reactors; Reactors tend to be poorer performers than defenders, prospectors, or analyzers.

Which of the following is an example of core capabilities of an organization? A) The organization's balance sheet. B) The organization's overhead costs. C) The popularity of products and services sold by the organization D) The organization's customer share. E) The organization's skill in maintaining large inventories effectively.

E) The organization's skill in maintaining large inventories effectively.

When significant improvements in performance can only be gained through radical new designs or new performance-enhancing materials, it is likely that a company is _____ in the S-curve pattern of innovation. A) at its breakeven point B) at either the beginning f the innovation cycle C) at the beginning of its maturity stage D) at the problem identification stage of the innovation cycle E) at the end of the innovation cycle

E) at the end of the innovation cycle

In the typical S-curve pattern of innovation, small amounts of effort will result in significant increases in performance _____. A) only at the end of the cycle B) throughout the cycle C) only at the beginning of the cycle D) during the lockout stage of the cycle E) at the midpoint of the cycle

E) at the midpoint of the cycle

When companies don't anticipate, recognize, neutralize, or adapt to the internal or external pressures that threaten their survival, it results in _____. A) resistance to change B) discontinuous change C) generational change D) design competition E) organizational decline

E) organizational decline

The General Agreement on Tariffs and Trade (GATT):

Eliminated tariffs in ten specific industries

There are eight general steps for organizational development intervention. The first step is _____.

Entry

_____ is fear of what others will think of your ideas.

Evaluation apprehension

A European car manufacturer collaborating with a Chinese car manufacturer for building a new car manufacturing company in China is an example of direct foreign investment. T/F

False

A strategic objective is a statement of a company's purpose or reason for existing. T/F

False

According to Kurt Lewin, managing organizational change is a simple process that requires organizational dialogue, change intervention, and reformatting. T/F

False

An attractive business climate is defined by only one dimension: it minimizes the political risk to a company. T/F

False

An organization's purpose must regularly change to adapt to changes in the environment over time. T/F

False

Bargaining power of buyers tends to be higher when a company sells a popular product to multiple buyers than when a company is dependent on just a few high-volume buyers. T/F

False

Companies that succeed are often constantly reexamining strategies or competitive practices that have been successful in the past in order to ascertain their probable future success. T/F

False

Fully functional change occurs when incremental improvements are made to a dominant technological design. In a fully functional change, the improved version of the technology is fully backward compatible with the older version. T/F

False

An industry-level strategy that is best suited to changes in the organization's external environment is a(n)_____ strategy.

adaptive

In the typical S-curve pattern of innovation, increased effort (i.e., money, research and development) brings only small improvements in technological performance _____.

at both the beginning and end of the cycle

A(n) ____ is the individual who is formally in charge of guiding a change effort.

change agent

Significant cost reductions, layoffs of employees, closing of poorly performing stores, offices, or manufacturing plants, or closing or selling entire lines of products or services would be characteristic of a _____ strategy.

retrenchment; The first step of a typical retrenchment strategy might include making significant cost reductions: laying off employees; closing poorly performing stores, offices, or manufacturing plants; or closing or selling entire lines of products or services.

Companies often choose a _____ strategy when their external environment doesn't change much or after they have struggled with periods of explosive growth.

stability

The ____ is a type of operational plan that saves managers time because it is created once and then used repeatedly to handle frequently recurring events.

standing plan; Standing plans are used repeatedly to handle frequently recurring events.

A laptop manufacturer has created a set of methods to deal with specific technical issues raised by customers. These methods are _____.

standing plans

BallGame manufactures A1 golf balls and prices these balls at about three times what ordinary golf balls cost. The A1 ball sells exceptionally well because customers perceive its patented three-layer construction to improve handling and increase distance. None of the other golf ball manufacturers can produce the same quality. The patent on these golf balls gives BallGame a(n) _____.

sustainable competitive advantage